Installation problem with explicitly added CAB

I have explicitly added a CAB file to _Streams table using MsiDb.exe. I have made changes to Component, File, Media and FeatureComponents table. I am facing some weird problem over here. Initially I had all text files in my Cabinet (Say File1.txt, File2.txt & File3.txt) and it was failing with the error File2.txt not found in the Cabinet. Then I checked with non-text files like File4.DLL and File5.exe and it worked without any error.

Can I know what is the problem with the cabinet having only text files. I have observed one thing regarding .OSD file present in the Cabinet file. OSD file doesn't have any entries for the files except binaries.

Answers

Which sequence should I follow? The one that is visible when I open a cabinet using some utility (e.g. WinRar) or the one that is present in the .OSD. BTW, I don't understand why this .OSD is getting created in my CAB. If I look at the CAB that was generated at the time of building the installer project, there is no .OSD file.